Are you teaching your kids the truth about money?
Steve Siebold, self-help author and Fortune 500 sales consultant, is asking parents this question in his newest book, Secrets Self-Made Millionaires Teach Their Kids.
With over 1,000 interviews with affluent parents who have rags-to-riches narratives, Siebold says he has discovered some money truths parents could discuss with their children and some misguiding money myths.
Out of all the 10 myths Steve Siebold listed, he believes the biggest misrepresentation of money is that it is the root all evil.
“It’s being taught by people who’ve never had any money,” said Siebold.
Instead of minimizing the significance of money, Siebold preaches that parents should be advised to focus on money and learn as much as they can about it.
“Money doesn’t make you happy, but it is really important,” said Siebold. “Breathing doesn’t make me happy, but I’m really happy that I can breathe.”
Here are 10 money myths and Steve Siebold’s money truths.
Myth No. 1: Making money is hard.
You can make money if you know where to look. Teach your children that making money is about solving problems. The world is full of problems, which means there is a lot of money-making potential for them. The bigger the problem you solve, the more money you can make.
Myth No. 2: Money is evil.
Unfortunately, the masses see money as a negative, nasty, necessary evil and they constantly fear and worry about it. Teach your kids to see money as their friend. This is a friend that offers opportunity, peace of mind and fun. Teach your kids to develop a healthy relationship with money and to see it as a medium of exchange instead of an indicator of self-worth.
Myth No. 3: Kids need an Ivy League education to become rich.
Most parents believe formal education is the only education that helps their kids become successful. Wealthy parents respect formal education, but they encourage their kids to tap any form of education available to make their dreams a reality. Whether it’s interviewing very successful people, reading, listening, or attending seminars, self-education is a powerful tool.
Myth No. 4: Hard work will make you rich.
If hard work was the secret to money, every construction worker and cocktail waitress would be rich. Teach your kids to think big, because thinking is the highest paid work. Teach your kids to use their natural talents, abilities and passions to think of solutions to problems people will pay for. Innovative thought goes much farther than a hard day’s work.
Myth No. 5: Your kids should associate with anyone.
Teach your kids having money doesn’t make you better than anyone else. However, if your kids want to be successful, teach them to hang out with winners. The world consists of two groups: winners and wannabees. The winners get what they want out of life. The wannabees sit around wondering how the winners did it. Your kids shouldn’t hang out with the “cool kids.” They should start associating with winners. Being cool is overrated. Being successful is better.
Myth No. 6: If you fail, move on to the next thing.
Parents often want to diversify their child’s interests and that’s great. However, make sure your kids understand that if they fail at something they shouldn’t automatically move on to the next thing. Rather, opt to teach your children about persistence and how failure is not fatal. The process of failure can even be encouraged to learn from one’s mistakes. Teach your kids that success is reached by failing over and over again.
Myth No. 7: All people are equal.
We should all be treated with equal respect and equal justice, but that does not make us equal in other ways. Your kids will be better than other kids in some areas, but will be lacking in others. Teach your kids to focus on their own unique talents and leverage them to construct the life they desire. Don’t cushion your children to believe they are owed a fair life with equal opportunities. Teach them they have to overcome adversity and make it happen for themselves.
Myth No. 8: Your children’s generation is lazy, entitled and spoiled.
This is not true, but every generation says this to the following generation. The truth is every generation has individuals that are lazy, entitled and spoiled, but they also have creators, producers and innovators. These people get things done and find new ways to do things. Unfortunately, these creative individuals are often demonized before they are celebrated. Encourage your kids to look beyond the stigma and follow their passions.
Myth No. 9: Money will make you happy.
While having a livable amount of money seems to make life easier, it does not directly bring happiness. Too many people, parents included, think that a certain marker of money in the bank will help them feel more secure. There is no amount of money that can erase life’s chaos and struggles. Happiness is sought from family, friends, and most importantly, love. Don’t teach your children to equate money to happiness, teach them to find happiness before they get money.
Myth No. 10: Middle class means you reached the American Dream.
Aspiring to be middle class is outdated by decades. In the U.S., the middle class is a large demographic and it takes minimal ambition to make it there. Some people are perfectly fine with keeping a roof over their heads and food in the fridge. Encourage your children to raise their expectations and strive for more ambitious heights. Inspire them to be world class where they can be their own boss and make their own dreams happen.
